Varchild lowers Strong Buy rating for AAI to Buy
Due to OIL prices spiking... I am reducing my Strong Buy rating for AAI (Airtran Holdings) to a Buy.
This simply means that I am still standing by my belief that AAI at a $5 handle is a great investment.... but that Oil prices spiking are never a "good" and "wonderful" thing to happen to a debt laden, struggling airline company.
Normally I'd lower a stock like this to a SELL but I happen to be contrarian to the analysts out there predicting $85 Oil in July. I believe Oil starts pulling back and going down just as it did last year at about 2nd week of July. Therefore, the rally in Oil should be looking a lot weaker in a few weeks.